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Stocks RTX DCF valuation

DCF valuation

What is RTX Corp worth?

With the base-case assumptions below, a discounted cash flow model on RTX Corp's reported free cash flow gives $118.11 per share. The share price was $189.40 on September 25, 2026, 60% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$7.94B
Average free cash flow, last 5 years
$5.57B
Cash
$8.31B
balance sheet of June 30, 2026
Debt
$37.15B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
1,356,400,000
Revenue growth per year, last 5 years
9.4%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear4.5%3.5%2.0%10.0%$65.42-65%
Base9.5%6.0%2.5%9.0%$118.11-38%
Bull14.5%9.0%3.0%8.0%$223.16+18%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$157.75$169.94$184.85$203.48$227.44
8.0%$128.10$136.01$145.35$156.57$170.28
9.0%$106.46$111.87$118.11$125.39$133.99
10.0%$90.01$93.86$98.22$103.20$108.95
11.0%$77.10$79.92$83.07$86.62$90.63

Where the presets come from

Base: years 1 to 5 grow at RTX Corp's revenue growth rate over the last 5 fiscal years (9.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

RTX Corp company page